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Greek deflation steady in July, prices fall for 29th month

Greek consumer prices fell by 2.2 per cent year-on-year in July, with the annual pace of deflation unchanged from the previous month, data from the country's statistics service showed on Friday.

PHOTO: REUTERS

[ATHENS] Greek consumer prices fell by 2.2 per cent year-on-year in July, with the annual pace of deflation unchanged from the previous month, data from the country's statistics service showed on Friday.

Greece's EU-harmonised deflation rate picked up, showing prices fell by 1.3 per cent in July from a fall of 1.1 per cent in June. Analysts polled by Reuters were projecting a decline of 1.2 per cent.

Greek consumer prices fell by an average of 1.3 per cent in 2014 compared to a year earlier.

For years an inflation outlier in the eurozone, Greece has been in deflation mode for the last 29 months as cuts in wages and pensions and a deep recession exerted downward pressures.

Deflation in Greece hit its highest level in November 2013, when consumer prices registered a 2.9 per cent year-on-year decline.